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Best debt consolidation loans in November 2024

Updated Nov 22, 2024

What to know first: Debt consolidation loans allow borrowers to combine several high-interest debt into a new loan. The best ones offer low rates, flexible repayment terms and quick funding turn times, ideally with a lower interest rate. These loans typically have interest rates that range from around 7 percent to 36 percent, but the rate you qualify for depends on your credit history, annual income and debt-to-income (DTI) ratio.

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PERSONAL LOANS

LightStream: Best for high-dollar loans and longer repayment terms

4.7

Est. APR
6.94- 25.29%
* with AutoPay
Loan term
2-7 yrs*
Loan amount
$5k- $100K
Min credit score
695
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PERSONAL LOANS

Upstart: Best for bad credit

4.8

Est. APR
7.40- 35.99%
Loan term
3-5 yrs
Loan amount
$1k- $50K
Min credit score
300

Achieve: BEST FOR MULTIPLE DISCOUNTS

4.7

Est. APR
8.99- 29.99%
Loan term
2-5 yrs
Loan amount
$5k- $50K
Min credit score
620
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PERSONAL LOANS

LendingClub: Best for good credit debt consolidation

4.5

Est. APR
9.06- 35.99%
Loan term
2-5 yrs
Loan amount
$1k- $40K
Min credit score
600
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PERSONAL LOANS

Happy Money: Best for specialized credit card debt program

4.6

Est. APR
8.95- 17.48%
Loan term
2-5 yrs
Loan amount
$5k- $40K
Min credit score
640
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PERSONAL LOANS

Best Egg: Best for a wide array of secured loan options

4.6

Est. APR
6.99- 35.99%
Loan term
3-5 yrs
Loan amount
$2k- $50K
Min credit score
600
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PERSONAL LOANS

Citi® Personal Loan: Best for quick payoff term

4.6

Est. APR
11.49- 20.49%
Loan term
1-5 yrs
Loan amount
$2k- $30K
Min credit score
720
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PERSONAL LOANS

Upgrade: BEST OVERALL DEBT CONSOLIDATION LENDER

4.7

Est. APR
9.99- 35.99%
with AutoPay
Loan term
2-7 yrs
Loan amount
$1k- $50K
Min credit score
580
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Check rate with Bankrate

PERSONAL LOANS

Avant: BEST FOR PEOPLE WITH BAD CREDIT

4.7

Est. APR
9.95- 35.99%
Loan term
2-5 yrs
Loan amount
$2k- $35K
Min credit score
550

PERSONAL LOANS

Discover: BEST FOR GOOD CREDIT AND NEXT-DAY FUNDING

4.8

Est. APR
7.99- 24.99%
Loan term
3-7 yrs
Loan amount
$2.5k- $40K
Min credit score
660

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Breaking interest rate news

The Federal Reserve lowered rates by a half-percentage point in November, which means two things if you want to consolidate debt:
  1. Rates on new debt consolidation loans may eventually be headed lower. Check our rate table regularly so you don’t miss out on opportunities for a lower consolidation loan payment. 
  2. The Fed may lower rates even more in the future, giving more opportunities to save. 
To learn more, check out Bankrate’s latest news on what's happening with the Fed.

A closer look at our top debt consolidation loan lenders

The following is a closer look at each of our top picks, highlighting the most important aspects of each loan. This includes the lender's loan offerings and how they stand out against other lenders, who each loan is best for and why. When available we also provide unique insights into how Bankrate borrowers use money from our top debt consolidation loan lenders.

LightStream: Best for high-dollar loans and longer repayment terms

LightStream
Rating: 4.7 stars out of 5
4.7

Overview: LightStream, part of Truist Bank, is an online-only lender specializing in high loan amounts, long terms and low rates for those with good or excellent credit. Most Bankrate users who take out a loan with LightStream have an excellent credit score.

Est. APR
6.94%–25.29%
Loan amount
$5k– $100k
Min credit score
695

Upstart: Best for bad credit

Upstart
Rating: 4.8 stars out of 5
4.8

Overview: Upstart is Bankrate's 2024 award winner for best bad credit personal loan. It offers loans up to $50,000 and applicants can potentially qualify even without having enough credit history to generate a score. 

Est. APR
7.40%–35.99%
Loan amount
$1k– $50k
Min credit score
300

Achieve: Best for multiple discounts

Achieve
Rating: 4.7 stars out of 5
4.7

Overview: Formerly known as Freedom Plus, Achieve's debt consolidation discount and co-borrower option sets this lender apart as the best consolidation loan.  It also has an impressive array of additional perks not offered by competitors like its co-borrower and retirement savings discounts. Its flexible debt consolidation solutions come in handy if you have at least $5,000 of debt that needs to be financed with a loan. 

Est. APR
8.99%–29.99%
Loan amount
$5k– $50k
Min credit score
620

LendingClub: Best for good credit debt consolidation

LendingClub
Rating: 4.5 stars out of 5
4.5

Overview: Headquartered in San Francisco, LendingClub started as a peer-to-peer lender in 2007, but has since transitioned to a loan marketplace. Its minimum loan amount is lower than many other lenders at just $1,000.

Est. APR
9.06%–35.99%
Loan amount
$1k– $40k
Min credit score
600

Happy Money: Best for specialized credit card debt program

Happy Money
Rating: 4.6 stars out of 5
4.6

Overview: Happy Money's loan, the Payoff Loan, is made specifically for consolidating credit card debt and features one of the lowest APR maximums on the market. According to a 2022 Happy Money study, borrowers who consolidated at least $5,000 in credit card debt saw an average FICO increase of 49 points within four months of getting their loan.

Est. APR
8.95%–17.48%
Loan amount
$5k– $40k
Min credit score
640

Best Egg: Best for a wide array of secured loan options

Best Egg
Rating: 4.6 stars out of 5
4.6

Overview: Best Egg's loans are ideal for consolidation of many types of unsecured debt, from credit cards to medical debt. It has funded over 1.1 million loans since its inception in 2014. 

Est. APR
6.99%–35.99%
Loan amount
$2k– $50k
Min credit score
600

Citi personal loan: Best for quick payoff term 

Citi® Personal Loan
Rating: 4.6 stars out of 5
4.6

Overview: New York-based Citi is well known for its extensive banking products. Its personal loans come with zero application, origination, late payment or prepayment fees. This, along with its multiple discounts and a low maximum APR, makes for potentially low-cost loans. But you must have the credit to qualify.

Est. APR
11.49%–20.49%
Loan amount
$2k– $30k
Min credit score
720

Upgrade: Best overall debt consolidation lender

Upgrade
Rating: 4.7 stars out of 5
4.7

Overview: Upgrade is one of the newer companies on our list, founded in 2016. It isn't the only lender that offers same-day funding, but it also extends this benefit to borrowers with fair credit. Along with these features Upgrade offers a seamless online experience and customer support seven days a week.

Est. APR
9.99%–35.99%
Loan amount
$1k– $50k
Min credit score
580

Avant: Best for short-term bad credit loans

Avant
Rating: 4.7 stars out of 5
4.7

Overview: Founded in 2012 and headquartered in Chicago, Avant is one of the few lenders that accept borrowers with a credit score under 600. It's a competitive option for those who have bad credit. 

Est. APR
9.95%–35.99%
Loan amount
$2k– $35k
Min credit score
550

Discover: Best for low rates and no fees

Discover
Rating: 4.8 stars out of 5
4.8

Overview: Discover tested its first credit card in 1985 and has come a long way since. Headquartered in Riverwoods, Illinois, Discover has grown into a company that offers digital banking services well beyond just credit cards — and that product suite includes personal loans. 

Est. APR
7.99%–24.99%
Loan amount
$2.5k– $40k
Min credit score
660

What are debt consolidation loans?

A debt consolidation loan is a type of installment loan that allows you to pay off several other debts — usually high-interest rate credit cards — with one new loan that has a fixed payment. Debt consolidation loans work by replacing variable-rate debts with a single fixed-rate loan, saving you thousands of dollars in interest.

The fixed payment schedule of one to seven years gives you a definite pay off date. It also eliminates the temptation to keep paying the minimum credit card payments, which can keep you in debt for decades. 

The consolidation loan process starts with deciding which debts you want to pay off. Next, you’ll need to qualify based on the lender’s requirements. A high credit score is necessary to get the best rates. 

The lender will deposit your funds into your bank account or will send the money directly to your creditors. Once the loan is paid out, you'll make payments based on your chosen terms.

Financial wellness health check

A debt consolidation loan can help get you on track to a healthier wallet. One way they can do so is by helping repair low credit scores caused by taking on too much credit card debt. Besides paying on time, your credit utilization ratio has the biggest impact on how high — or low — your score is. However, credit cards often become financial fast food; they’re easy to get and you don’t often see the negative health effects until they’ve done some damage to your wealth health. The key to keeping your score high after a debt consolidation loan is to plan your spending ahead of time. Budgeting is money meal planning, and the more you do it, the sooner you’ll build a financially well future.

Pros and cons of debt consolidation

Weighing the pros and cons of debt consolidation will help you decide if it’s the best move for your finances.

Green circle with a checkmark inside

Pros

  • Interest rates are fixed and usually lower than credit cards and payday loans.
  • You’ll only have one monthly payment to track instead of several.
  • No collateral is typically required — your car and home are safe.
  • Funding may be available in as little as one business day.
  • Credit scores could improve after credit cards are paid off.
Red circle with an X inside

Cons

  • Maximum terms are usually limited to seven years which could make payments high.
  • Rates may be higher for borrowers with bad credit.
  • Funds can’t be reused as they’re paid off like credit cards.
  • Origination fees may be as high as 12 percent.
  • Can become a stopgap for poor spending if you keep reusing credit cards.
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The author's expert insights: When is the best time to get a debt consolidation loan?

There are three times when a debt consolidation typically makes the most sense. The first is when you want to pay off credit card debts to reduce how much interest you pay and improve your credit scores. The second is if you want to simplify your bill-paying strategy by combining credit cards, medical bills and other debt into one payment with a set payoff date. Finally, a debt consolidation loan could help you pay your debt off faster if you can afford the high payment that comes with a one or two year term.

- Denny Ceizyk | Bankrate Senior Loans Writer

Calculate what you could save by consolidating

To use the debt consolidation calculator, enter your outstanding debts and current interest rates. After receiving your estimated terms and monthly payment structure, adjust the details to find the most ideal consolidation loan for your budget.

How the Federal Reserve impacts debt consolidation loan rates 

The Fed rate is the rate at which banks can lend to each other, which means it has some connection to the rates lenders offer for different loan types, including debt consolidation loans. Although they aren’t directly affected by the rise and fall of Fed rate decisions, a series of several rate cuts over time may lead to lower personal loan rates. 

In fact, the Federal Reserve has cut rates twice in 2024 — a welcome change from the 11 rate hikes that preceded the cuts. The first was a surprisingly large half-percent cut at the September meeting. The second quarter-point cut occurred after the November meeting.  

This bodes well for consumers looking for lower rates on debt consolidation loans. A lower rate gives you a lower payment and reduces the amount of interest you pay over the loan’s term. 

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LEARN MORE ABOUT

Personal Loan Interest Rate Forecast For 2024

Average personal loan interest rates hover around 12 percent in early 2024.

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How to get a debt consolidation loan 

Whether you have bad credit or excellent credit, the steps for getting a debt consolidation loan are the same. However, you will have an easier time qualifying for a debt consolidation loan with a higher credit score.

How does credit score impact consolidation loan rates?

The average personal loan rate ranges from almost 11 percent to 32 percent, with the lowest rates going to borrowers with credit scores between 720 and 850. If you’re not in a rush to consolidate your credit, try to spruce up your score by avoiding any new credit inquiries or paying down your credit card balances.  

Use the table below to understand how much you could save based on your credit score.

Credit score Average loan interest rate
720-850 10.73%-12.50%
690-719 13.50%-15.50%
630-689 17.80%-19.90%
300-629 28.50%-32.00%

Debt consolidation vs. debt relief

Debt consolidation and debt relief can accomplish the same basic goal of helping you manage out-of-control debt, but each has very different impacts on your future creditworthiness.

With credit card consolidation, in particular, you combine the balance on several other debts into one new loan and monthly payment. The funds from the new loan are used to pay off all of your card balances, leaving you with a single fixed payment over a repayment term you choose. The potential benefit is a big jump in your credit score since your credit utilization ratio is a major factor in how high or low your score is.  

Debt relief is any action taken to lessen your debt in some way, and can include debt consolidation. Often debt settlement — negotiating with creditors to pay less than you owe and “settle” the debt — is the type of debt relief that companies focus on. Debt relief companies typically charge a fee to help you. An added drawback: Your credit score could drop significantly since you typically have to default on your payments to qualify.   

Here’s a brief overview of when to choose one over the other:

When debt consolidation makes sense

  • You have a lot of credit card debt to pay off.
  • You’re disciplined not to reuse the credit.
  • You can get a lower rate than you’re paying on the debt you want to pay off.
  • You want to improve your score for future borrowing (like a mortgage).

When debt relief makes sense

  • You can’t qualify for debt consolidation.
  • You can’t afford payments on debt you owe due to a sudden loss of income or unexpected expense.
  • You don’t plan to borrow money in the future.
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Bankrate tip

As your credit scores improve, you may be targeted with many new credit card offers. If you don’t resist the temptation to open new revolving credit card accounts, you could end up in a cycle of debt that’s difficult to get out of.

Alternatives to personal loans for debt consolidation 

If you’re not convinced a personal loan is the right fit, you may want to consider the pros and cons of debt consolidation alternatives. You may be able to find help with debt relief in a few forms, including other financing options and methods that don't involve taking out a loan.

Other options that involve borrowing

Balance transfer cards, home equity loans, home equity lines of credit and peer-to-peer loans may be better debt consolidation options for you. It depends on how much debt you have, your credit scores, and how quickly you’d like to pay off the balances. 

Ways to consolidate debt without a new loan

The ultimate goal of any debt consolidation strategy is to be debt free. If you don’t qualify for debt consolidation loans, you may want to consider other strategies for paying off debt

Ask the experts: Is a personal loan better than a balance transfer credit card for debt consolidation?


Nationally recognized student financial aid expert

The interest rate on a personal loan may be lower than on a balance transfer credit card. However, balance transfer credit cards may offer a teaser rate, even a 0% interest rate, that is good for a few months. When the introductory interest rate expires, you have to pay a much higher interest rate. Balance transfer credit cards may offer more flexible payments, so long as you pay at least the minimum payment, which may be higher than on a personal loan. But, check whether the personal loan allows prepayment without penalty.

Senior writer, Loans

The main debt consolidation advantage of a personal loan versus a balance transfer credit card is that it replaces revolving debt with installment debt with a definite payoff date. Consumer credit card use hit an all time high in 2023, and personal loans offer a way to combine those debts into one payment. And the Fed’s surprisingly large rate cut in September may make personal loans even more affordable in the future. Balance transfer cards are a good choice for borrowers who are very disciplined with their credit use, and can take advantage of teaser rates as low as 0 percent. However, once the introductory period is over, the transfer credit card rate can rise.

FAQs about debt consolidation loans

How we chose the best debt consolidation loan lenders

Bankrate's trusted debt consolidation loans industry expertise

48

years in business

30

lenders reviewed

20

loan features weighed

665

data points collected

To select the best personal loans for debt consolidation, Bankrate’s team of experts evaluated over 30 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four main categories: